What's Happening?
Unilever's Q3 2025 results reveal a strategic shift in its portfolio, with food now accounting for just 21% of revenue, down from 50-60% in the 1990s. Despite this reduction, food sales grew by 3.4%, driven by price and volume increases. Brands like Hellmann’s
and Knorr demonstrated resilience with steady global performance. Unilever is preparing to spin off its ice cream business, which currently contributes 16% to revenue, by the end of the year.
Why It's Important?
Unilever's strategic focus on beauty and personal care, with double-digit growth in these areas, indicates a shift in corporate priorities. The resilience of food brands like Hellmann’s and Knorr suggests that traditional food products still hold value in Unilever's portfolio. The impending spin-off of the ice cream business reflects broader industry trends towards specialization and portfolio optimization, impacting market dynamics and competitive strategies.
What's Next?
Unilever's spin-off of its ice cream business will likely lead to changes in its revenue structure and strategic focus. The company may continue to prioritize growth in beauty and personal care, potentially leading to further divestments in food categories. Stakeholders will watch for Unilever's next moves in portfolio management and market positioning.
Beyond the Headlines
Unilever's strategic shifts highlight the evolving nature of consumer goods companies, where diversification and specialization are key to maintaining competitive advantage. The focus on beauty and personal care reflects changing consumer preferences and the growing importance of wellness and self-care in global markets.
